Enhanced invitation process for electronic billing and payment system

ABSTRACT

Enhanced systems and methods for processing invoices, payments, and money transfers are described. One aspect of the invention is a computer-implemented method (and corresponding system and computer program product) for inviting an entity to open an account at a billing and payment system, the method comprising: issuing a check payable to the entity, wherein a checkbox for opening an account at the billing and payment system is printed on an endorsement section of the check along with a reference to additional information regarding additional information related to the account opening; receiving an image of the endorsement section of the check after the check is cleared; determining whether the checkbox is checked in the image; and responsive to a determination that the checkbox is checked, opening an account for the entity at the billing and payment system.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.13/046,335, filed Mar. 11, 2011, which is a continuation-in-part of U.S.patent application Ser. No. 12/363,647, filed Jan. 30, 2009, and claimspriority under 35 U.S.C. § 119(e) to U.S. Provisional Patent ApplicationSer. No. 61/313,075 filed on Mar. 11, 2010, and U.S. Provisional PatentApplication Ser. No. 61/356,477, filed on Jun. 18, 2010. U.S. patentapplication Ser. No. 12/363,647 claims priority under 35 U.S.C. § 119(e)to U.S. Provisional Patent Application Ser. No. 61/025,255, filed Jan.31, 2008; U.S. Provisional Patent Application Ser. No. 61/059,255, filedJun. 6, 2008; U.S. Provisional Patent Application Ser. No. 61/088,984,filed Aug. 14, 2008; U.S. Provisional Patent Application Ser. No.61/140,752, filed Dec. 24, 2008; and U.S. Provisional Patent ApplicationSer. No. 61/141,819, filed Dec. 31, 2008. The subject matter of all ofthe foregoing is incorporated herein by reference in their entirety.

BACKGROUND Field of the Invention

This invention relates generally to automated computer processing ofinvoices, payments, and money transfers.

Description of the Related Art

For years companies have been trying to move transactions into anelectronic system. Large businesses have the resources and scale tojustify the installation of new electronic systems. However, for a largesegment of small and medium size enterprises (SMEs), such attempts havenot fared well. This is because it is not cost effective for SMEs toinstall a dedicated system and there is no standardized transactionsystem to allow the sharing of costs among many different businesses.

In addition, traditional payment methods typically require relatedparties to know each other's bank accounts. For example, in order for apayor to electronically transfer a payment into a vendor's bank account,the payor must know the vendor's bank account number and ABA routingnumber. When the vendor receives the payment, it can also find out thepayor's bank account number. Thus, entities cannot hide their bankaccount information when making/receiving payments using the traditionalpayment methods.

SUMMARY

The present invention overcomes the limitations of the prior art byproviding enhanced systems and methods for processing invoices, checks,and money transfers.

One aspect of the invention is a computer-implemented method forinviting an entity to open an account at a billing and payment system,the method comprising: issuing a check payable to the entity, wherein acheckbox for opening an account at the billing and payment system isprinted on an endorsement section of the check along with a reference toadditional information regarding additional information related to theaccount opening; receiving an image of the endorsement section of thecheck after the check is cleared; determining whether the checkbox ischecked in the image; and responsive to a determination that thecheckbox is checked, opening an account for the entity at the billingand payment system.

Other aspects of the invention include computer program product, systemsand devices corresponding to the methods described above.

BRIEF DESCRIPTION OF THE DRAWINGS

The invention has other advantages and features which will be morereadily apparent from the following detailed description of theinvention and the appended claims, when taken in conjunction with theaccompanying drawings, in which:

FIG. 1 is a block diagram of an exemplary system according to oneembodiment of the present invention.

FIG. 2 are diagrams of two exemplary invoices according to oneembodiment of the present invention.

FIG. 3 is a flow diagram of an exemplary method for processing invoicesaccording to one embodiment of the present invention.

FIG. 4 is a flow diagram of an exemplary method for processingunrecognized invoices according to one embodiment of the presentinvention.

FIG. 5 is a diagram of a typical payment document according to oneembodiment of the present invention.

FIG. 6 is a diagram of an enhanced payment document according to oneembodiment of the present invention.

FIG. 7 is a flow diagram of an exemplary process for generating enhancedpayment documents according to one embodiment of the present invention.

FIG. 8 shows the top part of a payment document shown in FIG. 6according to one embodiment of the present invention.

FIG. 9 is a flow diagram of an exemplary process for verifying thatchecks are correctly deposited according to one embodiment of thepresent invention.

FIG. 10 is a diagram of an exemplary invoice according to one embodimentof the present invention.

FIG. 11 is a diagram of an exemplary check according to one embodimentof the present invention.

FIG. 12 is a block diagram of an exemplary system according to oneembodiment of the present invention.

FIG. 13 is a block diagram of an exemplary billing system according toone embodiment of the present invention.

FIG. 14 is a flow diagram of an exemplary process for preparing abilling transaction according to one embodiment of the present invention

FIG. 15 is a flow diagram of an exemplary process for processing checksreceived from payors according to one embodiment of the presentinvention.

FIGS. 16A and 16B are block diagrams of a system view and an accountview of an exemplary system according to one embodiment of the presentinvention.

FIG. 17 is a flow diagram of an exemplary process for implementing thesystem shown in FIGS. 16A-B according to one embodiment of the presentinvention.

FIG. 18 is a block diagram of a billing and payment system according toone embodiment of the present invention.

FIG. 19 is a flow diagram of an exemplary process for inviting entitiesto open accounts at an electronic billing and payment system accordingto one embodiment of the present invention.

FIGS. 20A and 20B are diagrams of a backside of an exemplary check andan endorsement section of the check according to one embodiment of thepresent invention.

FIG. 21 is a diagram of a map of trust and familiarity for an electronicbilling and payment system according to one embodiment of the presentinvention.

FIG. 22 is a block diagram of a secured document lockbox systemaccording to one embodiment of the present invention.

The figures depict embodiments of the present invention for purposes ofillustration only. One skilled in the art will readily recognize fromthe following discussion that alternative embodiments of the structuresand methods illustrated herein may be employed without departing fromthe principles of the invention described herein.

DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS

Automated Invoice Capture

FIG. 1 shows an overview of an exemplary system 100 according to oneembodiment of the present invention. An electronic service provider 110,such as eFax Services, is connected to the Internet 101. Other intranetor networks could be used instead of the Internet. Also connected toelectronic service provider 110 are multiple fax lines (or fax numbers)111 a-n for receiving faxed invoices. Customer sites 121 a-n (of which,for clarity and simplicity, only 121 x is shown) connect to the Internet101 via connections 120 a-n. Corporate site 105 of an operator of thisexemplary system 100 is represented here by a server 102, a storagesystem 103, and software 104 installed on the server 102. The actualarchitecture of such a system may, and in most cases probably will,comprise many servers, multiple storage systems and/or hard drives, andmultiple instances of software. All these possible components arerepresented here by the single instances of the components of site 105.

FIG. 2 shows typical invoices as received, represented here as exemplaryinvoices 200A and 200B, according to one embodiment of the presentinvention. These invoices are issued by one party (the issuer) toanother party (the recipient). Invoices 200A and 200B contain thefollowing data, although with a slightly different layout: issuer logo201, issuer name and address 202, recipient address 203, line items 204and total amount due 205. Other additional data such as terms, due date,etc., are not shown in FIG. 2, but such data are customarily included ontypical invoices.

One aspect of the invention includes approaches for recognizing aninvoice, for example identifying the issuer of the invoice and/orrecognizing the layout of the invoice. Invoices can be recognized bycomparing them to a database of distinguishing features. For example,invoices might be recognized based on the logo of the issuer, nameand/or address of the issuer, or other data or signature features thatare unique to an issuer. Once an invoice is recognized, a correspondingtemplate can be applied to extract the relevant data from the recognizedinvoice.

There are various modes by which an invoice may be entered into thesystem and various media on which the invoice may be received. Forexample, the recipient of a paper invoice could fax it to a dedicatedfax number for that recipient's account, such as, for example, any offax numbers 111 a-n shown in FIG. 1. Alternately, the recipient of theinvoice could instruct the issuer to fax the invoice directly to saidaccount's dedicated fax number. In yet another case, an invoicerecipient may have a customized email address residing on or connectedto server 102, to which invoices may be emailed with attached files ofany of various popular word processing or accounting or image captureprograms, such as, for example, MS Word or Adobe Acrobat. In any casesuch a file may be converted into an image file showing the image of theinvoice. In the case of a Word file, depending on the complexity of theformat, direct parsing may be applied. Alternately, the file may beprinted to an Adobe Acrobat portable document file (.PDF) file and thenprocessed as an image.

Once received, invoices can be recognized using many different types ofdistinguishing features beside those discussed above. Additionalexamples include but are not limited to black/white histograms, colorhistograms, sectional signatures and sectional histograms. OCR (OpticalCharacter Recognition) can also be used as a part of the recognitionprocess. It can be applied to just the header, to the entire invoice orto any part of the invoice. The result of the OCR can be used as thebasis for recognizing an invoice. Alternately, OCR can be applied afteran invoice has been recognized, in order to extract data from theinvoice. Other examples of distinguishing features include metadata(e.g., fax number, issuer e-mail address, subject line, pdf- orWord-metadata, keywords, barcode), number of pages, OFX (Open FinancialExchange) download, and XML (eXtensible Markup Language) fields or tags.Other suitable structured files with a certificate may be used in othercases.

FIG. 3 shows an exemplary process 300 for processing a typical invoice,such as invoice 200A or invoice 200B, according to one embodiment of thepresent invention. The process 300 may be implemented by an electronicpayment system such as the one shown in FIG. 1. The invoice image isreceived 310, for example by one of the ways described above. It may beemailed or uploaded or transferred by any of several electronic meansfrom the site of service provider 110 to the site of system operator105. The system 105 compares 320 the invoice to a database in storagesystem 103 that contains distinguishing features for known invoices. Forexample, the system 105 may search for a matching logo in a library ofknown issuer logos or search for a matching signature (or seal) in alibrary of known issuer signatures. In some cases, other distinguishingfeatures (e.g., the originating fax number, the originating emailaddress) may be used in addition to or in place of the logo pattern andsignature to recognize the invoice.

At step 380, the process branches. If no match is found (no branch), theinvoice is sent 390 to a work file, in which unprocessed documents arestored. Treatment of the documents in this work file is explained below,in the description of FIG. 4. If a match is found for the logo patternor signature (yes branch), the system 105 identifies 330 the issuer. Acorresponding template for the recognized invoice is also retrieved 340from storage system 103. The template includes instructions forextracting data from the invoice, for example it may define fieldsidentifying where and/or in what format on the invoice certain data isexpected to be located. In some cases, an issuer may have more than onetemplate. For example, the issuer may have different templates forpersonal users and for business customers. As another example, theissuer may have different templates for single-page and multi-pageinvoices, or may simply change the format of its invoice over time or bygeographic region. Accordingly, the system 105 may use more refineddecision-making processes to select the correct template for aparticular invoice.

Data is extracted 350 from the invoice based on the selected template,using OCR and/or other suitable means. In some cases the image may beprocessed using OCR before it is received 310, for example, by using OCRfunctions provided by Adobe and other tools by other companies. Theinformation extracted in step 350 is preferably stored 360 in a databasethat also resides in storage system 103.

In one approach, once a template is identified for an invoice, data maybe automatically extracted from the invoice (e.g., as identified byfields in the template). In another approach, invoices may be groupedtogether based on their similarity. Data extracted from certainlocations in one invoice may be extracted from similar locations inother invoices in the group. Previously discovered data patterns may bereused on similar invoices. Data can also be manually extracted.Different pattern recognition engines, expert systems, rule-basedengines and other approaches may also be used to extract data frominvoices.

Processed invoices can also be used to check or refine the templates foran issuer. Differences between invoices for the same issuer ordeviations from past norms can also be used to flag potential problems,as well as to request human review.

FIG. 4 shows an exemplary process 400 for processing unrecognizedinvoices that were previously stored in a work file in step 390 of FIG.3, according to one embodiment of the present invention. An invoice isretrieved 410 from the work file, which resides in storage system 103.The invoice is presented for manual viewing 410 by a human operator. Instep 420, the process branches. If the operator determines that theinvoice is a document from a known issuer with known logopattern/signature (yes branch) but, for whatever reason, the logopattern/signature recognition has not worked (for example, a coffeestain on the logo may have made the logo unreadable to the automatedrecognition system), the process moves to step 430. The operator selects430 a matching template and sends 440 the invoice back to therecognition process 300 (e.g., to data extraction step 350).

If, however, in step 420, the operator determines that the invoicecannot be matched with a known template (no branch), the operatorcreates 450 a new template. This new template may be created completelynew or it may be created by modifying a suitable existing template. Thenew template, along with its issuer information and the invoice, isstored 460 in storage system 103. In step 470, a recognition simulationis performed to verify that the new template works correctly, namelythat (1) the automated recognition system can properly identify the newtemplate for the invoice and (2) data can be accurately extracted fromthe invoice based on the template. If, in step 480, the templatesimulation works correctly (yes branch), the invoice is sent 440 to therecognition process 300 as described above (e.g., to data extractionstep 350). If, however, the simulation does not work correctly (nobranch), the template may be manually adjusted 490. The template editormay highlight the section that created problems. For example, a fieldfor OCR may be too narrow or too wide. If the field is too wide, forexample, the system may attempt to interpret a part of the logo as apart of the address. In the case of a field that is too narrow, somecharacters may be cut off. The operator can adjust 490 the templateaccordingly to solve such problems.

Another aspect of the invention is cross-organizational learning. Forexample, if an invoice addressed to Customer A is identified as beingfrom Vendor 1, and the system can then identify other signature items(image, “from” address, etc.) in the invoice. Thereafter the system maybe able to use those other signature items to select the correcttemplate for the invoice, and use that template to find the correct datain certain sections of the invoice. Additionally, if a same formatinvoice from this same Vendor 1 is sent to a second Customer B, then thesystem can recognize from the signature information that the invoice isfrom Vendor 1 and apply the template to the invoice to extract thecorrect data.

One advantage of the approach described above is that the capture ofinvoices can be made economical for SMEs. The number of invoicesprocessed can be aggregated over a large number of SMEs, thus achievingeconomies of scale that can be shared by the businesses. In addition,although any one SME may only receive a few invoices from any particularissuer, the community of SMEs in the aggregate may receive a largenumber of invoices from that issuer. This then makes it cost efficientto develop templates or other processes to handle those invoices,whereas it would not be cost efficient for each SME to do soindividually. The system of FIG. 1 can be implemented withoutsignificant additional investment by either the issuers or therecipients. The cost of system 105 is shared by all users and not borneentirely by one user. The recipients can send invoices to the system 105using conventional means, such as fax and email. The invoices betweenissuers and recipients can be settled using conventional means such aschecks, EFT, and ACH, or using advanced means such as the enhancedprivate interbank clearing system described in more detail below withrespect to FIGS. 16A-B and 17. In addition, as described above with theexample using Customers A and B, and Vendor 1, information learned fromprocessing one recipient's invoices can be used to improve the overallprocess for all recipients.

In one approach, the community of recipients can themselves improve theprocess. For example, the system 100 can enable the community to provideinput about distinguishing features of the invoices. Various recipientsand/or issuers may suggest different features for recognizing invoices.There may even be a community process for determining preferred featuresfor distinguishing invoices. A similar process can be used to determinetemplates, including determining fields in templates.

Another aspect of community is that different recipients can exchangetheir experiences of dealing with issuers. Many recipients may be in asimilar situation with respect to issuers. Another beneficial aspect ofthe community is that SMEs are likely to deal with “small” issuers.There will be a very large number of small issuers (approximately 25million in the U.S.), but each one issues invoices to only a smallnumber of customers (typically, 20-30). While it is not economical for acentralized identification process to be applied to this set of issuers,it is economical to let the recipients/issuers themselves help identifythe issuers and, in the aggregate, create a comprehensive catalog of theissuers.

Therefore, the described systems and processes allow the integration ofpaper and/or electronic document invoices into an automated system toreduce the need of manual labor (such as manual input of invoices) inprocessing the transactions. In addition, the systems can be fullyautomated and process these transactions without human intervention.

Enhanced Invoice Payment Document Generation

FIG. 5 shows an overview of a typical payment document 500 with a checksection 501 and a statement section 510, according to one embodiment ofthe present invention. The payment document 500 is often printed on aletter- or A4-sized bifold with three sections with the check section501 on top and the statement section 510 occupying the lower two-thirds.The check section 501 contains information about a payor 502, a payee503, an amount in words 504, an amount in numbers 505, additionalbanking information 506, and information such as the ABA routing numberand check number 507. The statement section 510 shows credits andinvoices and also shows a total due 511 that typically reflects theamount shown in payment amounts 504 and 505. In some cases, total 511may differ from payment amounts 504 and 505, because the total due 511may take into account other credits or debits.

FIG. 6 shows an enhanced payment document (also referred to as anenhanced invoice payment document) 600, according to one embodiment ofthe present invention. As shown, the enhanced payment document 600contains a check section 501, a communication section 610, and a payorsupplemental section 611. Elements of the check section 501 aredescribed above in FIG. 5. The lower two-thirds of the payment document600 includes the communication section 610, which in this example is anactual copy or image of the invoice being paid by this check, and thepayor supplemental section 611. The invoice image or copy in thisexample contains the logo 613 of the billing party, the items billed andthe billing total 612, which in this example agrees with the paymentamounts 504 and 505. Payor supplemental section 611 is available foroptional additional payor information, such as notes about thistransaction, a mini-statement, and/or an advertisement.

FIG. 7 shows an exemplary process 700 for generating the enhancedpayment document 600 according to one embodiment of the presentinvention. The process 700 may be implemented by an electronic paymentsystem (EPS) such as the one shown in FIG. 1. Initially, a user selects701 invoices for payment and enters that information into the system.The system retrieves 702 the selected invoices from data repository 103.

At step 703, the system asks the user if the user wants to write onecheck for multiple invoices and the process branches based on the user'sanswer. This option may be presented to the user each time process 700is implemented, or the user could configure the system to always selector never select this option. If a check is generated for only oneinvoice (no branch), the system sets 704 a counter to 1 and generates705 a payment document print file for a first invoice. As describedabove for the payment document 600, the payment document contains animage of the first invoice. In step 706 the counter is advanced oneincrement. In step 707 the process branches, depending on whetherpayment documents have been generated for all the pending invoices. Ifall have been generated (yes branch), the process advances to step 711,where the payment document print files are printed and the paymentdocuments are stored in data repository 103 for recording, and theprocess terminates at step 712. The print files may be printed locallyor remotely (e.g., through the data repository 103). If paymentdocuments have not been generated for all invoices (no branch), theprocess loops back from step 707 to step 705, and another paymentdocument is generated for the next invoice, and repeats until allpending invoices are paid.

Alternatively, if, in step 703, the user elects, or the system isconfigured to pay multiple invoices with one check (yes branch), thesystem prepares 708 a layout of the payment document. The paymentdocument may optionally be presented to the user for approval 709. Ifthe user does not accept the layout (no branch), the process goes backto step 703, where the user may elect to print a payment document foreach invoice separately. If, in step 709, the user accepts the proposedlayout (yes branch), the system generates 710 a payment document printfile containing multiple invoice images and whose check payment amountequals the total of all the included invoices. The invoice images may besmaller than they would be in a payment document containing only oneinvoice image, depending on the number of invoices being paid and thelayout of the payment document. In step 711, the payment document issent to a printer (local or remote) and data repository 103 (from whichthe remote printing may occur), and the process terminates at step 712.

In some cases, an image of the invoice may be printed on the same pageas the check; while in other cases, multiple images may be printed. Inyet other cases, one or more images may be printed on the back of thepage, opening the front for classic statements or other uses, includingbut not limited to advertisements, promotions or campaigns.

In some cases, instead of or in addition to printing an image of theinvoice on the payment document, an identifier of the invoice image maybe printed on the check section of the payment document. For example, aURL (Uniform Resource Locator) of an invoice image may be printed on theface (or the back) of the check. As a result, one can correctly andeasily identify the corresponding invoice for a check payment byvisiting the printed URL. The identifier can also be incorporated intothe payment transaction in other manners based on the nature of thepayment. For example, if the payment is made through an ACH transaction,a URL of the invoice may be included in the ACH addenda field. As aresult, the URL will subsequently show up on the payor and/or payee'sbank's web summary and bank statement.

Therefore, the described systems and processes provide a simple,easy-to-use approach to generate enhanced invoice payment documents withfeatures that ensure that the credits of the underlying payments areapplied to the correct invoices.

Enabling Correct Check and Electronic Payment Deposit

FIG. 8 shows the top part (check section 501) of the payment document600 shown in FIG. 6. Section 801 shows the back side of the checksection 501 according to one embodiment of the present invention.Banking information 506 on the front side is shown on the back side as adotted box 806. Also shown is the dotted line 803 that separates theendorsement section 804 from the rest of check back side 801. Also shownis a section 802 a-n where endorsement information is preprinted on theback of the check in high-quality black ink. This endorsementinformation is solicited from the payee of the check before the payormails out the check.

Having the endorsement information thus clearly printed is advantageouscompared to using a standard institution endorsement stamp, because thelatter can be smudged, faint, or otherwise difficult to read. Having theendorsement information clearly printed also reduces the risk of thecheck being erroneously or fraudulently deposited in a wrong account.Also, since the check is eventually cleared by a depositing bank, it isreasonable that the depositing bank verified the endorsementinformation. In addition, the deposit information may be captured fromthe depositing bank and transferred to the drafting bank or anelectronic payment system (EPS) such as the one shown in FIG. 1 toverify payee information. As the real time processing of checks is done,all the payee information and deposit information is available to theinvolved banks The payor of the check and EPS may obtain suchinformation from the banks In addition, as described in further detailbelow, the deposit information can also be used to ensure correctdeposit of electronic payments.

FIG. 9 shows an exemplary process 900 for ensuring correct paymentdeposit according to one embodiment of the present invention. Theprocess 900 may be implemented by an electronic payment system (EPS)such as the one shown in FIG. 1. In step 901 the system pulls payee data(e.g., payee identity, payment amount) from data repository 103 forpayment preparation. In step 902 the system sends a message to a payeewho has not previously participated in the service provided by thesystem. These messages may be sent by email, SMS (Short MessageService), facsimile, or other similar messaging systems. Such a messagemay, for example, contain a URL (Uniform Resource Locator) that opens aweb user interface upon user selection. A user can confirm the user'spayee identity and enter data such as, for example, banking informationin the web user interface. In other cases, instead of a URL, a callbacknumber may be offered, where a caller can leave payee information with acall center agent or IVR (Interactive Voice Response). In yet othercases, an email or SMS address may be included in the message, for theuser to respond and provide payee information. Additional informationmay be provided to the payee (e.g., in the message or the web userinterface) to assure the payee that, for example, the provided userinformation will not be passed on to the payor, or to show legitimacy ofthe user data solicitation (e.g., showing billing information).

The system receives 903 the solicited payee information (e.g., depositinformation) from the payees and stores 904 the payee information indata repository 103. The user may respond to the soliciting message andsets up a payee account with all the required deposit information, thushelping the system to obtain new customers. In step 905 the systemretrieves payee information from data repository 103. In step 906 thesystem may additionally verify the received payee information byexecuting a mock transaction. As described in detail below, the mocktransaction verifies payee information through approaches such as therandom deposit approach.

In step 907, the process branches. If the data is not satisfactorilyverified (no branch), the process returns to step 902 and the systemsends a new message to the payee soliciting information. If the data issatisfactorily verified (yes branch), the process branches again in step908 based on whether the payment is an electronic payment. If thepayment is an electronic payment (yes branch), in step 909 the systemdeposits the electronic payment to an account (e.g., through an ACHtransaction, an EFT payment, or a wire transfer) specified by theverified payee information (e.g., account name, routing number, accountnumber). The process ends in step 910. If the payment is a paper checkpayment (no branch), in step 911 the system sends print instructions toa check printer, including instructions for printing information such asthe payee name, account number, ABA (American Bankers Association)number, and other similar information on the endorsement section of thecheck. The process ends in step 910.

If the system receives no response to its message from the payee throughthe web interface within an allotted time period, such as, for example,two business days, the system sends out a check to the payee withoutprinting information on the endorsement section.

The mock transaction utilized by the system to verify 906 payeeinformation may involve one or more transactions designated to verifyvarious aspects of the payee information. For example, the system maycreate a check used to verify the deposit information provided by thepayee and send the check to the payee. The check may include a partialpayment of an outstanding invoice. If the check is subsequentlysuccessfully deposited, the system can assume that the depositing bankhas verified the deposit information, consider such informationverified, and make payment for the remaining portion of the invoice.Thus, the process allows such verification before starting electronictransfers at all, thus helping to add a layer of security to avoidpayments from being misrouted.

As another example, a partial payment of an outstanding invoice may bemade via electronic payment (e.g., ACH) according to the depositinformation provided by the payee, and the remaining balance of theinvoice may be paid via a check. Once the customer has confirmed thatthe electronic payment was successfully posted, the system considers theprovided deposit information successfully verified and makes subsequentpayments electronically according to the verified deposit information.The payee may specify a preference of electronic payment, check payment,or a combination of both. The system can make the payments according tothe user preference.

As a third example, the mock transaction may conduct a random depositthat involves crediting or debiting a random small amount (typically twosmall transactions) and then request the payee to verify either thetransaction ID or the cent amounts. The random deposit approach helps toidentify inaccurate account numbers (e.g., typos) and verify that theperson providing the information has legal access to the account beingset up.

In another aspect, the system reconciles the payee information withadditional data in addition to or instead of the random deposit approachto prevent check fraud (e.g., illegitimate account). For example, thesystem may populate the bank information of the payees from theendorsement from the primary bank shown on previously cleared checks,and use such information to verify against the provided payeeinformation. If the information matches, the payee information is deemedto be verified. If there is a partial match, a judgment call is made bya risk underwriter. If there is no match, the payee fails theverification 906. Such bank information may be solicited from thedepositing bank by separate transmission or from other service providerssuch as SafeChecks (see http://www.positivepay.net/). The informationretrieved from previously cleared checks can also be used to reconcilepayee identity (e.g., name) on the record to detect fraud.

In yet another aspect, the system considers certain users (e.g.,administrators of working accounts) trustworthy, and either does notverify 906 or verifies 906 their payee information with less scrutiny.In addition, trusted administrators of working accounts can extend theirtrust or infer trust onto others by being involved with setting upaccounts, for example, of key vendors or clients, thus implicitlyextending their trust. A composite trust rating considers items such ashow often, how much, for how long and how recently successfultransactions have been completed in conjunction with a particularadministrator. In some cases, a single composite score includes weightedaspects. In other cases, two or more scores may be used to representdifferent aspects, individually or in combination.

A trusted administrator can confer some of his or her composite trustrating by inviting and confirming new applicants. Typically, only acertain percentage of influence by the trusted administrators will beallowed to be inferred. The rest can be earned, or determined byproviding multiple references. Certain events as well as non-events mayreduce the trust of an administrator. Others may increase it. Typically,a separate, but related value may be used for the company of the trustedadministrator, creating a network of trust relationships. This can alsobe used to help other things, such as the company's credit worthiness.

Therefore, the described systems and processes generate enhanced paymentdocuments with features that ensure that the payment will be depositedin the correct account, and thus prevents mistakes and frauds. Thedescribed systems and processes also reconcile cleared checks withrecords and name identification data.

Correct Invoice Payment Deposit

FIG. 10 shows an invoice 1000 according to one embodiment of the presentinvention. It has, for example, the address 1001 of the issuer orsender, recipient's address 1002, items billed 1005 a-n, payor accountnumber 1003, invoice number 1004, bill total 1006, and an address 1007to which to send payment. Address 1007 may contain postal address and/orelectronic payment address information.

FIG. 11 shows a typical check 1100, such as a payor might return inresponse to invoice 1000, according to one embodiment of the presentinvention. Check 1100 has, for example, a payor address 1101, a payeeidentity 1102, an amount field 1106 stating the check amount in bothwords and number, some bank information 1103, an invoice number 1110, anaccount number 1111, signature confirmation or other accreditationinformation 1108, and bank routing information 1109.

FIG. 12 shows an overview of an exemplary system 1200 according to oneembodiment of the present invention. Similar to system 100 shown in FIG.1, system 1200 includes an electronic service provider 110 and acorporate site 105 both connected to the Internet 101. In addition, theexemplary system 1200 provides a lockbox service at the corporate site105, using server 102, data repository 103, and software set 104.Additional software modules may be present (not shown) at site 105. FIG.12 also shows connections 120 a-n for lockbox service customer sites(only 121 x is shown) and connections 1201 a-n for payor sites (only1201 y is shown). The payors are the end customers of the lockboxservice customers.

FIG. 13 shows an overview of an exemplary billing system 1300 accordingto one embodiment of the present invention. The lockbox customer at site121 x issues an invoice from system 122 x, which has data repository 123x and an exemplary instance of billing software 1301. In some cases,software 1301 may be standard billing software, of any of the types thatare commonly used. In other cases, software 1301 may be a web-basedbilling software or some other type of software. In some cases, theinvoice may be issued directly from the customer's system 121 x to thepayor's system 1201 y, transmitted by postal mailing of a printed copyor by emailing an electronic copy. In other cases, the billinginformation may be passed to the lockbox system 102, where it isprocessed and sent to the payor 1201 y as an invoice. As shown by thedotted lines 1320, 1330, the billing information and the invoice may betransmitted electronically through the Internet 101.

In both cases, the payor number and the invoice number are made uniqueamong the payors, the invoices, and/or payor/invoice combinations. Forexample, if two lockbox customers issue invoices to a same payor, thepayor numbers on the two invoices may be different from each other. Insome cases a unique number may be generated by lockbox operator system102, in conjunction with data repository 103 and software 1302.Generating a unique number may be implemented as appending a uniqueprefix to a standard payor number and invoice number issued by customersoftware 1301. In some cases, the system 1300 provides a plug-in forsoftware 1301 that can communicate with lockbox operator system 102 todownload for each transaction the required information to generateunique numbers.

FIG. 14 shows an exemplary process 1400 for preparing a billingtransaction according to one embodiment of the present invention. Instep 1401 a lockbox customer issues a new invoice to the system 1300. Instep 1402 the system 1300 obtains a unique invoice number for theinvoice, either from the local system 122 x or from the main system 102and data repository 103. In step 1403 the system retrieves a uniquepayor number. If necessary, the system generates a new unique payornumber for a new payor or for existing payors that do not yet have aunique payor number (e.g., for a new lockbox customer). Alternatively oradditionally, the system could create a unique identifier for eachpayee, payor, or payee/payor combination. This unique identifier can bea combination of a generic post office box plus a code or mail stop thatis unique to the payee, payor, or payee/payor combination. In step 1404the system 1300 generates an invoice, e.g., using process 700 as shownin FIG. 7. In step 1405 the process branches. If the invoice is nottransmitted to the payor electronically (no branch), in step 1406 thesystem prints the invoice for postal mailing and the process terminatesat step 1407. If the invoice is transmitted to the payor electronically(yes branch), in step 1408 the system transmits the invoice to the payorin a suitable electronic document file (EDF) format (e.g., PDF) and thenthe process ends at step 1407.

FIG. 15 shows an exemplary process 1500 for processing checks receivedfrom payors according to one embodiment of the present invention. Instep 1501 a received check is scanned. In step 1502 the system locatesthe unique invoice number on the scanned check. In some cases, thisprocess can be aided by having a unique signature (for example, a prefix“555” or similar) that allows the system to identify the unique invoicenumber more readily. In some cases the system utilizes a process similarto the one described above in FIGS. 3 and 4 to locate data in thescanned check. In step 1503 the system likewise locates the unique payornumber on the scanned check. In most cases, the system needs only one ofthese two numbers to identify the correct lockbox customer account todeposit the check and/or to credit the correct payor account for thepayment. For example, even if two lockbox customers are both depositingpayments from the same payor, the system has assigned two differentunique payor numbers to the payor for the two invoice payments.Therefore, the system 1300 can correctly deposit the two checks to thetwo lockbox customers' accounts respectively and credit the payor's twoaccounts for the two payments accordingly. In step 1504 the system findsthe paid amount on the scanned check. Based on the information obtainedfrom the scanned check, in step 1505 the system accesses data in datarepository 103 to determine which lockbox customer is the payee. In step1506 the system finds the lockbox customer's account information andaccess codes. In step 1507 the process branches based on whether thecheck is an electronic check. If the check is not an electronic check(no branch), in step 1508 the paper check is sent to a lockbox staff tomanually processes the check, and the process terminates at step 1509.If the check is an electronic check (yes branch), the process moves tostep 1510, where the system executes an ACH or EFT transaction todeposit the electronic check, and the process terminates at step 1509.

If neither the invoice number nor the payor number is available when thepayment is being processed, the system could use one or more of thefollowing approaches to resolving the payment. For example, the systemcould provide an exception handling user interface (UI). In this UI, auser (e.g., the payor, the payee, a lockbox staff) could look up alloutstanding invoices across all companies using the lockbox service.This lookup would allow searching on any of the fields on the check,including the payor, the amount, or the payee. Another option would befor the system to credit the payment to the payee, but provide aninterface for the payor/payee to select the invoice it should be appliedto. Alternatively, the system could email the payor/payee to ask whichinvoice the payment was meant for. And, as another option, an agentcould call the payor/payee to determine which invoice the payment wasmeant for.

Therefore, the described systems and processes efficiently and correctlydeposit incoming checks to the correct lockbox clients' accounts,independent of the payor identity and of the accounting software usedfor issuing invoices.

Enhanced Private Interbank Clearing System

FIG. 16A shows an overview of an exemplary system 1600 according to oneembodiment of the present invention. System 1600 includes multiple banks1601 a-n and an interbank clearing system 1609, which has a server 1610,a data repository 1611, and multiple software instances 1612 a-n. Insome cases the clearing system 1609 is implemented in an electronicpayment system (EPS) such as the one shown in FIG. 1. Banks 1601 a-n andthe clearing system 1609 connect through a network 1604. Network 1604typically could be the Internet with added security or Virtual PrivateNetworks (VPNs). In other cases network 1604 may be a private network, awireless network, or a hard-wired network, or any combination thereof.Also shown are exemplary customer and partner accounts 1603 a(a-n) ofrelated parties and a clearing entity master account 1602 a at the bank1601 a and reciprocal clearing entity master account 1602 n andadditional customer and partner accounts 1603 n(a-n) at bank 1601 n.

System 1600 thus permits the making and receiving of payments on theintra-bank host (within a specific bank 1601). Examples of intra-banktransactions include transactions between accounts 1603 a(a-n) and 1602a in bank 1601 a and, respectively, transactions between accounts 1602 nand 1603 n(a-n) within bank 1601 n. The combination of these twointra-bank host-based transfers enables a transfer from a customer 1603a(a-n) at Bank 1601 a to a vendor 1603 n(a n) at bank 1601 n to becompleted within bank clearing system 1609. Therefore, if a total of allthe balances of the master account 1602 x and customer and partneraccounts 1603 x(a-n) in a single bank 1601 x is calculated, then toclear the transactions all that needs to be done is to effect a transferbetween clearing entity master accounts 1602 a-1602 n at each of therespective banks 1601 a-1601 n, in this example, to keep the clearingentity master accounts 1602 a-n balanced (within preset boundaries). Thetransfer needs not be the exactly accurate amount of the difference ofthe transfers effected at each end, because there may be a base balance,which, in this example, is a base amount in each of the master accounts1602 a-n, that is allowed to vary within a certain range.

This approach can be extended not just to two banks, but to dozens,hundreds, or all of the banks in a country or in the world. With a fewstrategically selected banks, in many cases a vast majority of thetransactions can be effected in this way immediately. The balancingtransaction between account 1602 a and another account 1602 x (x withinb-n) to keep all the floats in the master accounts 1602 a-n in rangecould be done, for example, just before the end of the day using a wiretransfer, to effect immediate transfers between banks Other similarmoney transfer mechanisms (e.g., ACH, EFT) may also be used.

FIG. 16B shows a different view of the same systems, as a view focusedon accounts and not a system view. As shown, the clearing system 1609 isrepresented by a circle and the participating banks are represented byblocks overlapping with the circle. The overlapped portion representsthe corresponding clearing entity master accounts 1602 a-n. The otherbank accounts 1603 a-n(a-n) are represented by blocks within thecorresponding banks outside the circle.

Making and receiving intra-bank payments directly on a bank's hostsystem enable the transfers to clear immediately (or return a messageimmediately if funds are not available). Therefore, such intra-banktransactions eliminate the risk to the third-party system for managingpayments. In addition, when access to the bank's host is not available,the bank may provide accelerated messages for returns, allowing the ACHtransactions to clear in one day rather than the customary two-dayperiod.

In FIG. 16B, for example, a transfer from customer 1603 a(a) to vendor1603 a(n) is executed on the intra-bank host of Bank A, from account1603 a(a) to clearing entity master account 1602 a as transfer 1620 aand then on to vendor account 1603 a(n) as transfer 1620 b. However, atransfer from customer 1603 a(b) (at Bank A) to vendor 1603 n(n) (atBank N) is made as transfer 1621 a from account 1603 a(b) to masteraccount 1602 a (at Bank A) and then as transfer 1621 n from masteraccount 1602 n to account 1603 n(n) (at Bank N). Also shown symbolicallyis a transfer 1630 an, symbolizing the clearing transactions betweendifferent master accounts 1602 a, 1602 n as needed to rebalance thesystem.

FIG. 17 shows an overview of an exemplary process 1700 for implementingthe system shown in FIGS. 16A-B according to one embodiment of thepresent invention. In step 1701 all the transactions to be effected arecollected from data repository 1611. In step 1702 the transactions aresorted according to their origin and destination ends. Thus, forexample, a transaction from one customer account to another partneraccount (between accounts 103 a(a-n)) within the same bank do not haveto be taken into account in calculating the clearance between masteraccounts 1602 a-n.

In step 1703 the system splits the sorted transactions into, in thisexample, infra-bank transaction groups A and B, for each of the banks1601 a-n having pending transactions. Group A contains transactions ofmoney from the respective customer accounts 1603 x(x) into the masteraccount 1602 x; and group B from the master account 1602 y into thereceiving partner account 1603 y(y). By splitting the transactions intotwo groups, the transactions transferring money to the master accountscan be effected first. In some cases, for all transactions where theinitial transfer from customer accounts 1603 x(x) to master account 1602x was successful, and where the master account balance 1602 y supportsit, the funds can be transferred immediately to customer accounts 1603y(y).

In step 1704 the imbalance among the master accounts at all theparticipating banks can be calculated. In step 1705 the transactions ingroup A are effected, and in step 1706 the interbank wire is effected.In step 1707, after verifying that the interbank wire has been received,a transaction for group B (those accounts where the master accountbalance 1602 y did not support the second transfer in step 1703) iseffected. Depending on the timing of the interbank wire, transactiongroup B may be executed on the next business day. Intra-bank (host)transactions such as those of groups A and B may be done after close ofbusiness. However, the interbank wire used in step 1706 is onlyavailable at a specific hour. The process ends at step 1708.

It is clear that many modifications and variations of this embodimentmay be made by one skilled in the art without departing from the spiritof the novel art of this disclosure. For example, instead of having twotransaction groups, more groups or just a single group can be defined,with the latter option of one group especially suitable in cases wherethe balance is sufficient. Additionally, the system could analyze themoney flow among banks, based on a daily, weekly, and quarterly pattern,and other suitable factors, including but not limited to holidays,weather, economic indicators, stock market indicators, and hencecalculate which amounts must be exchanged and which amounts can be takenout of balances, knowing that there is a high likelihood of the balancesbeing replenished in the next few days. Thus this technique can reducethe amount of wire transactions. Also, in another case, a super-masteraccount may be established as a single hub to clear multiple masteraccounts, or, in other situations, a master account may be establishedwith banks that have their own real-time links to other banks, thereforeallowing non-wire transfers among those linked banks in real time. Thesemodifications and variations do not depart from the broader spirit andscope of the invention, and the examples cited here are to be regardedin an illustrative rather than in a restrictive sense.

Therefore, comparing to the conventional approaches, the describedsystems and processes transfer money between accounts at different banksfaster and more cost-effectively.

Enhanced Electronic Anonymized Payment System

FIG. 18 shows an overview of an exemplary electronic billing and paymentsystem 1800 according to one embodiment of the present invention. Asshown, the billing and payment system 1800 includes a vendor directory1801, a fee-based accounts receivable module 1802, a free accountsreceivable module 1804, a fee-based accounts payable module 1803, and afree accounts payable module 1805. The fee-based accounts receivablemodule 1802 provides functions such as synchronizing invoices andpayments, sending invoices, inviting customers to the system 1800, weblockbox service, and collaborate. The free accounts receivable module1804 provides functions such as sign up usability, create/uploadinvoices, track payments, collaborate, and upgrade to fee-based accountreceivable accounts. The fee-based accounts payable module 1803 providesfunctions such as collaborate, accelerate, ePayment, adoption, and massinvite. The free accounts payable module 1805 provides functions such aspay bills, collaborate, and upgrade to fee-based account payableaccounts. In general, the services/functions provided by the freemodules 1804, 1805 are a limited subset of services/functions providedby the fee-based modules 1802, 1803, accordingly.

Both the fee-based modules 1802, 1803 provide fee-based services tousers (e.g., customers and/or vendors) with fee-based accounts. Inaddition, the system 1800 invites certain customers (e.g., accountspayable) and vendors (e.g., accounts receivables) to use systemfunctions of the free modules 1804, 1805 for free. Also, customers whohave a fee-based accounts payable account may have a free privatevendor. For clarity, a customer with a fee-based accounts payableaccount 1803 is called a “paid customer”; a customer with a freeaccounts payable account 1805 is called a “free customer”; a vendor witha paid accounts receivable account 1802 is called a “paid vendor”, and avendor with a free accounts receivable account 1804 is called a “freevendor”.

The vendor directory 1801 allows the system to identify a vendor andthus transfer payments without requiring any specific financialinformation about this company. The vendor directory 1801 supportsadditional biller networks and EDI (Electronic Data Interchange)vendors, promotes vendors (e.g., account receivables) to directory, andprovides pay to console. In one embodiment, the vendor directory 1801comprises a database that stores information about vendors and some ofthe information (e.g., full business name such as “AT&T Wireless” and“AT&T Small Business Services”, postal address) is searchable by users.The database may also include information about the customers (e.g.,customer's name and mailing address), some of which may be searchable byusers. Each of the users (vendors, customers) has a unique ID (alsocalled the network ID) that can be assigned or generated (e.g., byapplying cryptographic hash function to information about the user).

A paid customer may pay to its accounts-receivable vendors, using one ofthe transactions 1810 a-n, either to paid vendors or to free vendors,which the customer may invite its vendor to become, to simplify theprocess of paying bills. The free vendor gets a free, no-hassle accountthat allows him to receive payments from existing paid customers. Thegoal is eventually to encourage the free vendors to become a paidvendor, as indicated by arrow 1806, so the vendor would have the abilityto also invoice other parties. When a vendor (also called an accountreceivable user or AR user) receives a payment through the system 1800,the payment is automatically matched to the appropriate customer andinvoice in the vendor's accounting system. Paid vendors can likewiseinvite new customers to free accounts payable accounts 1805 or work withexisting paid customer and receive payments using the system 1800.Similarly, the goal here is to eventually let the free customers becomepaid customers, as indicated by arrow 1807. In some cases, theelectronic billing and payment system 1800 may provide promotions toencourage users to invite not-yet-linked customers or vendors. Unliketypically offered trial accounts, the system 1800 may set no time limitfor the limited functionality provided by the free modules 1804, 1805.

By offering enhanced funds flow management, migration into the system1800 becomes easy. Further, the system 1800 offers plug-ins into popularaccounting systems thereby allowing easy integration into a company'soperation without disrupting or complicating internal processes. Infact, each user can update its accounting system without even knowingwhat the other user's accounting system is via the networksynchronization. Thus a vendor can easily achieve single site billing,and customers can have the same convenience. Rather than having to loginto a myriad of web sites operated by different entities (e.g.,vendors, banks, service providers, etc.), all the invoices arrive at onecentral location and flow from there directly into the company'saccounts payable, thus reducing the overhead and time wasted. Also,statements and reconciliations maybe transmitted among the accounts, andon the return path adjustments, credits, discounts, etc., all with muchclearer and simpler communication than today's scribble on a copy of aninvoice, etc.

Additional system functions may include managed visibility of thepayment process. For example, a customer could let a vendor know that hehas received a bill, that the bill has been approved, and when it isscheduled for payment, thus offering better transparency of the process.In some cases queries and or complaints may also be routed over thesystem. However, the customer has control over these transparencyfeatures and can decide what features are to become visible to thevendor. Additionally, the system may offer a mutual rating system thatcould, for example, rate a customer on such characteristics astimeliness of payment, accuracy of disclosed information,follow-through, etc. Because all the data is available, such as billingdate, payment terms, and actual payment, as well as whether there werecomplaints or other issues, a very accurate payment quality can bederived, much more accurate than typical rating agencies can obtain onsmall or medium enterprises.

It is clear that many modifications and variations of theabove-described embodiments may be made by one skilled in the artwithout departing from the spirit of the novel art of this disclosure.For example, instead of having two transaction groups, more groups orjust a single group can be defined, with the latter option of one groupespecially suitable in cases where the balance is sufficient.Additionally, the system 1800 could analyze the money flow among banks,based on a daily, weekly, and quarterly pattern, and other suitablefactors, including but not limited to holidays, weather, economicindicators, stock market indicators, etc. and hence calculate whichamounts must be exchanged and which amounts can be taken out ofbalances, knowing that there is a high likelihood of the balances beingreplenished in the next few days. Thus this technique can reduce theamount of wire transactions. Also, in another case, a super-masteraccount may be established as a single hub to clear multiple masteraccounts, or, in other situations, a master account may be establishedwith banks that have their own real-time link to other banks, thereforeallowing non-wire transfers among those linked banks in real time. Thesemodifications and variations do not depart from the broader spirit andscope of the invention, and the examples cited here are to be regardedin an illustrative rather than in a restrictive sense.

Accordingly, in one aspect, the described embodiments provide a systemand method that allows two companies to abstract their bank accounts andstill exchange money. In another aspect, the described embodimentsprovide a system and method that allows a vendor or customer to populateand update the data in their customer's or vendor's accounting systemfrom their own accounting system EDI-style. This approach eliminates theneed to re-enter data manually, which typically can also increase risksfor transcription errors. The vendor/customer may define a permissionsmask controlling when and how information is shared during thebilling/invoice payment process (e.g., upon the completion of aworkflow). For example, one company may choose to propagate data to itsvendors informing them that an invoice has been received, that theinvoice has been approved for payment, and that the invoice has beenpaid. A second company may choose, through its permissions mask, to onlyshare the fact that the invoice has been paid, not the interim stepsleading to that bill being paid.

In another aspect, the described embodiments provide a system and methodthat allows synchronization of invoices and payments from vendor tocustomer, and back (e.g., both ways). In another aspect, the describedembodiments provide a system and method that allows vendors andcustomers to define a permission mask controlling when/how informationis shared during the billing/invoice payment process. In another aspect,the described embodiments provide a system and method that allows bothvendors and customers to have a unique network ID in a master directoryindependent of regular items, including but not limited to tax ID, emailaddress, corporation number, etc., thus enabling them to link to othercompanies, and also allowing companies to invite their vendors andcustomers to create an account which links them to the theircustomer/vendor in a single step. In another aspect, the describedembodiments provide a system and method that allows companies to managethe flow of funds into and out of a single bank account for purposes ofmaking bill payments and collecting on receivables. In another aspect,the described embodiments provide a system and method that allows acompany to accept invitations to connect from multiple vendors orcustomers from within a single system, and also allows users to invitegroups of vendors or customers from a database of vendors/customers in acompany's accounting system.

Advanced Invitation Process

FIG. 19 shows an exemplary process 1900 for inviting entities to openaccounts at an electronic billing and payment system, according to oneembodiment of the present invention. The process 1900 may be implementedby an electronic billing and payment system such as the ones showed inthe accompanying figures. Each step in the process 1900 may involveretrieving and/or recording information in a data repository such as thedata repository 1611 in FIG. 16 and the data repository 103 in FIG. 1.

In step 1901, the system provides a user (hereinafter called an“invitor”) multiple various system options including an option to bill(if the invitor is a vendor/accounts receivable) and/or an option to pay(if the invitor is a customer/accounts payable). In step 1902, thesystem receives from the invitor a user selection of the option tobill/pay, and provides the invitor with a list of candidatebillees/payees and/or an option to input a billee/payee. In step 1903,the system receives from the invitor a user selection (or input) of therespective billee or payee, and provides the invitor with variousapplicable system options including sending the billee/payee aninvitation for a free account with the system. In step 1904 the systemreceives from the invitor a user selection of sending an invitation fora free account to the selected/inputted billee/payee (hereinafter calledthe “invitee”), and provides the invitor with security question optionsthat the invitee must answer in order to accept the invitation. For aninvitee that the invitor knows well, he may draw from a set of standardsecurity questions provided by the system or create a security questionabout personal information, such as city of birth, name of first pet,name of grammar school, etc. Alternatively, the invitor may draw from aset of standard security questions provided by the system or create asecurity question about company-related information that only thecorrect invitee would know, such as, for example, name of manager, lastfour digits of business telephone number, etc. In step 1905, the systemreceives from the invitor a user selection (or input) of a securityquestion, along with the “correct” answer that he anticipates from theinvitee. The system may then receive from the invitor inputs regardingother billing and/or payment transactions, or repeat steps 1901 through1905 to invite other entities.

The completion of step 1905 triggers the system to perform step 1906, inwhich the system creates and transmits an invitation (e.g., an emailmessage) to the invitee. In step 1907, the system receives a response tothe invitation (e.g., email or other type of message) including ananswer to the selected security question. In step 1908, the systemverifies the response by comparing the answer from the invitee againstthe “correct” answer entered by the invitor. The system can beconfigured to, either as default or in case of a non-matching response,present the invitee's response to the invitor for further verification.In step 1909, once the response is verified (either by the system or bythe invitee), the system notifies the invitee of acceptance (or not)into a free part of the system extended to partners of paying users. Insome cases, the processes of steps 1906 through 1909 may all be carriedout via email. In other cases, the initial invitation prepared in step1906 may contain a link to a secure web site where the system andinvitee execute the remaining steps. In some cases, after an invitor hasinstructed the system to send an invitation, the system may detect thatthe named invitee has already been activated for service by anothercustomer of the service (or otherwise has an account with the system).In such a case, rather than sending out an invitation, the system asksthe invitor to verify the identity of the proposed invitee to ensurethat the invitee is indeed the same entity. If so, the invitee is thenlinked automatically to the invitor for services such as receivingelectronic invoices and payment services, or receiving electronictransactions at no cost, etc. During the matching process, in some casesthere may be a near match, which then can be confirmed by the user; orthe system may ask the user to select from a list of existing activeusers.

Additional Embodiments for Pre-Populated Check Endorsement Section

FIGS. 20A-20B shows another embodiment for pre-populating the checkendorsement section in addition to the embodiments described in thesection titled “Enabling Correct Check and Electronic Payment Deposit”,according to one embodiment of the present invention. FIG. 20A shows anoverview of the back side 2001 of a check 2000. Endorsement section 2002contains a boxed area 2003. FIG. 20B shows exemplary details of boxedarea 2003, according to one embodiment of the present invention. Detailsinclude a checkbox 2004, which the recipient of the check may check toaccept a free service agreement; an ABA number line 2005; an accountnumber line 2006; an email address line 2007; and a printed informationline 2008, which may be a reference to a URL (in this example,www.****.com/tc) at which location the user may see the terms andconditions that he accepts when he checks the box 2004. In some cases, asignature may also be requested next to the box, giving permission fromthe invitee to open an account in his or his company's name.

A billing and payment system creates a check for a user of the system tomake a payment to a non-user, and pre-populates the endorsement sectionas illustrated in FIGS. 20A-20B and described above. Once the non-usercashes the check, the system receives an image of the cashed check andanalyzes the filled boxed area 2003 to determine whether the non-useraccepted the free service agreement (i.e., checked the checkbox 2004).If the non-user accepted the agreement, the system enrolls the non-userto the free service and sends an email to the nonuser to the address thenon-user provided in the boxed area 2003.

Map of Trust and Familiarity

FIG. 21 shows an exemplary overview of a map 2100 of trust andfamiliarity for an electronic billing and payment system, according toone embodiment of the present invention. The map 2100 has a familiarityaxis 2101 and a trust axis 2102. The axis 2101 shows the range offamiliarity (i.e., how much experience the system has with an entity),from known to unknown. The axis 2102 shows the range of trustworthiness,from trusted to untrusted. The familiarity and trustworthiness of anentity (or user) can be determined based on information the entity hasprovided, and/or the length of time the entity has been makingtransactions in the system without problems, such as, for example,cancelled checks to provide proof of actual business, uncovered checksproviding information about lack of funds or lack of planning, etc. Forexample, the more positive transactions are recorded for an entity, themore the entity is trusted.

The system has essentially four zones of entity qualifications asillustrated in the map 2100. There is a safe zone 2103, which comprisesknown and trusted entities. Entities that are less well known and/orless well trusted are in an O.K. zone 2104. Entities whose qualities areunknown, usually because they are new to the system, are in an unclearzone 2105. Everything else beyond those three zones is an unsafe zone2106. Depending on how the system is configured, new accounts may startin different locations in the map 2100, such as points 2110, 2111, and2112. As the entities establishes itself to the system, theirtrustworthiness/familiarity to the system move in the map 2100 alongtrajectories such as, respectively, 2120, 2121, and 2122, whichtrajectories may be linear or not, depending on such variables as typesof transactions, time periods between transactions, amounts transacted,and hopefully eventually, ending up in the safe zone 2103. For example,if any entity transacts only one or a few transactions of very smallamounts, it may not progress beyond the OK zone 2104, because the systemdoes not know if these transactions are only for the purpose of gaininga trusted rating from the system.

In some cases, these trust ratings may be available to customers; inother cases, this data may be available internally only, for internalassessment of transactions. In yet other cases, the data can be madepublicly available; thus the system can act as infrastructure or basisfor a rating agency. Also, additional information such as timeliness ofpayment, etc., may be separately rated or considered in the map 2100.Further, based on the receivables side, a company may be rated on thetimeliness of payments received from it relative to the due date.Accordingly, a lot of information may be mined from the informationderived from behavior of both customers and their partners, but notnecessarily all information may be made public (as in available tocustomers or to the public in general, for example, for a fee), nor isit desirable to make all the information public. Additionally, thesystem may take into account the referral or recommendation of aparticularly trusted party, such as a CPA firm or an accreditedbookkeeping firm. Further, these trusted parties themselves may havetheir ratings going up or down based on their behavior and the behaviorof the companies they have recommended.

Secured Document Lockbox System

FIG. 22 shows a secured document lockbox system 2204 for invoices andother accounting-related documents, according to one embodiment of thepresent invention. The system 2204 receives documents from sources suchas system users 2201 (e.g., customers, vendors), service partners 2202(e.g., CPAs, accountants, etc.), and internal system services 2203(e.g., of a billing and payment system). These documents may be scannedand emailed to the system 2204, faxed to the system 2204, or sent asphysical paper documents to the system 2204. In some cases, for example,customers 2201 may ask partners 2202 to send their invoices and/or otheraccounting-related documents to a post office box address of the system2204.

All received documents are placed in a queue 2205, out of which they areprocessed by one or more of various means 2206 a-n. The queue 2205allows for efficient and secure document processing by a third party.The system 2204 restricts documents/information made available toprocessing means 2206 to only those necessary for the processing (andnot any other potentially sensitive data in the customer's account), andthereby enables a much more secure process. By allowing the processingto be routed to a single queue, the system 2204 becomes a centralresource for working through documents across a number of uniqueaccounts belonging to different companies or organizations. Examples ofthe processing means 2206 include manual input of printed data by dataentry personnel, OCR scanning, and any other similar suitable processingmeans.

In one embodiment, every document is processed by at least two separateprocessing means 2206, as an accuracy check. If the two processingresults do not match, the document is processed further (e.g., byanother processing means 2206) to obtain at least two matching results.When the document is satisfactorily processed, it is stored in a datarepository 2207, from which it is then passed back to the correspondingdocument source, and/or entities needing it. To pass back the processeddocument, the system 2204 may send a message with the document attachedas a secure importable file that could be imported directly into theaccounting system of the receiving entity. In some cases, the system2204 may send the document directly to an online accounting system (notshown), subject to the online accounting system providing the rightcredentials; while in other cases the system 2204 sends only anotification, telling the entity to go to a secure web site and downloadthe file, in a manner similar to services currently available to bankingcustomers.

It is clear that many modifications and variations of the system andmethod disclosed herein may be made by one skilled in the art withoutdeparting from the spirit of the novel art of this disclosure.

These modifications and variations do not depart from its broader spiritand scope, and the examples cited here are to be regarded in anillustrative rather than a restrictive sense. In alternate embodiments,the invention is implemented in computer hardware, firmware, software,and/or combinations thereof. Apparatus of the invention can beimplemented in a computer program product tangibly embodied in anon-transitory computer-readable storage device for execution by aprogrammable processor; and method steps of the invention can beperformed by a programmable processor executing a program ofinstructions to perform functions of the invention by operating on inputdata and generating output. The invention can be implementedadvantageously in one or more computer programs that are executable on aprogrammable system including at least one programmable processorcoupled to receive data and instructions from, and to transmit data andinstructions to, a data storage system, at least one input device, andat least one output device. Each computer program can be implemented ina high-level procedural or object-oriented programming language, or inassembly or machine language if desired; and in any case, the languagecan be a compiled or interpreted language. Suitable processors include,by way of example, both general and special purpose microprocessors.Generally, a processor will receive instructions and data from aread-only memory and/or a random access memory. Generally, a computerwill include one or more mass storage devices for storing data files;such devices include magnetic disks, such as internal hard disks andremovable disks; magneto-optical disks; and optical disks. Storagedevices suitable for tangibly embodying computer program instructionsand data (also called the “non-transitory computer-readable storagemedia”) include all forms of non-volatile memory, including by way ofexample semiconductor memory devices, such as EPROM, EEPROM, and flashmemory devices; magnetic disks such as internal hard disks and removabledisks; magneto-optical disks; and CD-ROM disks. Any of the foregoing canbe supplemented by, or incorporated in, ASICs (application-specificintegrated circuits) and other forms of hardware.

What is claimed is:
 1. A computer-implemented method for inviting anentity to open an account at a billing and payment system, the methodcomprising: issuing, by a computing device of the billing and paymentsystem, a check payable to the entity, wherein issuing the checkincludes sending instructions to print, by a printing device, a checkboxfor opening an account at the billing and payment system on anendorsement section of the check; receiving, by the computing deviceover a network, an image of the endorsement section of the check afterthe check is cleared; in response to the receiving of the image,automatically analyzing the received image via an image recognitioncomponent of the computing device to determine whether the checkbox ischecked in the image; and responsive to a determination that thecheckbox is checked, automatically causing the billing and paymentsystem to open an account for the entity, wherein a service of thebilling and payment system is accessible based in part on the opening ofthe account.
 2. The method of claim 1, wherein the endorsement sectionfurther comprises a line for the entity to provide an address of theentity, and the method further comprises: recognizing the addressprovided by the entity along the line in the image of the endorsementsection of the check; and sending a message to the recognized addressregarding opening the account for the entity at the billing and paymentsystem.
 3. The method of claim 1, wherein the instructions to printfurther comprise printing a reference to additional information relatedto the account opening, the reference to additional informationcomprising a Uniform Resource Locator associated with a web page.
 4. Themethod of claim 1, wherein the received image is further analyzed viathe image recognition component of the computing device to determinewhether the endorsement section comprises a signature for the entity. 5.The method of claim 1, wherein the check is issued on behalf of a secondentity, and the entity can receive subsequent electronic payments fromthe second entity through the opened account.
 6. The method of claim 1,wherein the method further comprises determining deposit information forthe entity from the endorsement section of the received image.
 7. Themethod of claim 1, further comprising automatically determining, by thecomputing device, whether the entity is a non-user of the billing andpayment system.
 8. A non-transitory computer-readable storage mediumencoded with executable computer program code for inviting an entity toopen an account at a billing and payment system that, when executed by acomputing device associated with the billing and payment system, thecomputer program code comprising code for: issuing instructions to printa check payable to the entity, wherein the instructions to print thecheck comprise an instruction to print, by a printing device, a checkboxfor opening an account at the billing and payment system on anendorsement section of the check; receiving an image of the endorsementsection of the check over a network after the check is cleared; inresponse to receiving the image, automatically analyzing the receivedimage via an image recognition component of the computing device todetermine whether the checkbox is checked in the image; and responsiveto a determination that the checkbox is checked, automatically openingan account for the entity with the billing and payment system, wherein aservice of the billing and payment system is accessible based in part onthe opening of the account.
 9. The storage medium of claim 8, whereinthe endorsement section further comprises a line for the entity toprovide an address of the entity, and the computer program code furthercomprises program code for: recognizing the address provided by theentity along the line in the image of the endorsement section of thecheck; and sending a message to the recognized address regarding openingthe account for the entity at the billing and payment system.
 10. Thestorage medium of claim 8, wherein the instructions to print furthercomprise printing a reference to additional information related to theaccount opening, the reference to additional information comprising aUniform Resource Locator associated with a web page.
 11. The storagemedium of claim 8, wherein the received image is further analyzed viathe image recognition component of the computing device to determinewhether the endorsement section comprises a signature for the entity.12. The storage medium of claim 8, wherein the check is issued on behalfof a second entity, and the entity can receive subsequent electronicpayments from the second entity through the opened account.
 13. Thestorage medium of claim 8, wherein the executable computer program codefurther comprises determining deposit information from the endorsementsection of the received image.
 14. The storage medium of claim 8,further comprising automatically determining whether the entity is anon-user of the billing and payment system.
 15. A computer system forinviting an entity to open an account at a billing and payment system,the computer system associated with the billing and payment system andcomprising: a processor; and memory coupled to the processor and storinginstructions that, when executed by the processor cause the computersystem to: issue instructions to print a check payable to the entity,wherein the instructions to print the check comprise an instruction toprint, by a printing device, a checkbox for opening an account at thebilling and payment system on an endorsement section of the check;receive, via a network, an image of the endorsement section of the checkafter the check is cleared; in response to receiving the image,automatically analyze the received image via an image recognitioncomponent of the computer system to determine whether the checkbox ischecked in the image; and responsive to a determination that thecheckbox is checked, automatically open an account for the entity withthe billing and payment system, wherein a service of the billing andpayment system is accessible based in part on the opening of theaccount.
 16. The computer system of claim 15, wherein the endorsementsection further comprises a line for the entity to provide an address ofthe entity, and the memory further includes instructions which whenexecuted cause the processor to recognize the address provided by theentity along the line in the image of the endorsement section of thecheck; and send a message to the recognized address regarding openingthe account for the entity at the billing and payment system.
 17. Thecomputer system of claim 16, wherein the instructions to print furthercomprise printing a reference to additional information related to theaccount opening, the reference to additional information comprising aUniform Resource Locator associated with a web page.
 18. The computersystem of claim 15, wherein the received image is further analyzed viathe image recognition component to determine whether the endorsementsection comprises a signature for the entity.
 19. The computer system ofclaim 15, wherein the check is issued on behalf of a second entity, andthe entity can receive subsequent electronic payments from the secondentity through the opened account.
 20. The computer system of claim 15,memory further includes instructions which when executed cause theprocessor to automatically determine whether the entity is a non-user ofthe billing and payment system.